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The Company’s Innovation and Commercial Teams will move to the Cambridge/Somerville Location in 2020

Thursday, January 11, 2018

SOMERVILLE – The Cities of Cambridge and Somerville announced today that international health technology leader Philips will move its North American headquarters to Cambridge Crossing in 2020. Cambridge Crossing is a 45-acre development site where Cambridge, Somerville, and Boston converge and is owned and under development by an affiliate of DivcoWest. Philips’ offices willoccupy 243,000 square feet of the 250 North Street building, which is under construction and straddlesthe Cambridge and Somerville city line.The location will become home to more than 2,000 Philips employees.

This move by Philips is further recognition that Massachusetts and the Greater Boston area represent one of the strongest life sciences clusters in the world. The Cities of Cambridge and Somerville will collaborate to support Philips’ transition to the area.

“We are excited to welcomePhilips’innovations and commercial division to our vibrant life sciences community,” said Cambridge City Manager Louis A. DePasquale. “Cambridge is home to more than 400 life science companies, and our commercial tax rates continue to be one of the lowest of any city in the state. We look forward to working with the Philips employees, the City of Somerville, and the Commonwealth to support the company’s transition into their new home in Cambridge Crossing.”

“Philips North America’s decision to move to Cambridge Crossing right next to the relocated Lechmere T-stop—the first of seven new Green Line stations to come—is a great example of the strength of a regional approach to development and our shared commitment to a Smart Growth strategy for our cities,” said Somerville Mayor Joseph A. Curtatone. “Philips is one of the most respected brands in the health technology industry. We are extremely proud to welcome them to our vibrant and diverse community and introduce them to our deeply talented, highly knowledgeable, and innovative resident workforce.”

The City of Somerville’s SomerVision comprehensive plan calls for community-driven development that among other goals will support the creation of jobs, open space, and affordable housing, and the Philips move will advance all of these priorities. Roughly one-third of the 370,000 square foot North Street building is located in Somerville. In addition to the 2,000 jobs and new commercial tax revenue that Philips will bring to Cambridge and Somerville, this project will generate payments to Somerville from DivcoWest for jobs linkage to support job training and other workforce development efforts, and for housing linkage to support the creation of affordable housing. The 45-acre site’s master plan also includes major investments in green space including open space, a community plaza, and an already completed park. In addition to the building that will house Philips, Cambridge Crossing also incorporates within Somerville a recently approved 450,000 sf science and technology building.

The 45-acre Cambridge Crossing master plan, based on the City of Cambridge’s planning for Eastern Cambridge, creates a new mixed-use neighborhood and includes major investment in green space including open space, an athletic field, and an already completed park. The plan also includes investments in public transit, with the new Green Line Station, roadway and bicycle-pedestrian infrastructure. The City of Cambridge expects that the move of the significant industry leader to Cambridge Crossing will catalyze future development in the district.

Cambridge Crossing’s proximity to the region’s advanced technology marketplace and employment pool, research facilities, hospitals, and academic institutions was a motivating factor in the company’s decision to relocate. Also of importancewere the cities’ collaborative efforts with the Commonwealth and DivcoWest to secure the Green Line Extension, which will dramatically improve access to transit in both communities and throughout Greater Boston. The Cities of Cambridge and Somerville are both members of theLife Sciences Corridor, a network of five adjoining communities that together host more than 700 life science and biotech companies along the MBTA’s redline.

“As a leader in health technology, our move to the Cambridge-Somerville area further positions Philips as a key player in this vibrant, growing healthcare technology ecosystem,” said Dr. Joe Frassica, Chief Medical Officer and head of Research for Philips North America. “This move will enhance our ability to collaborate with existing academic partners and customers. In addition, we will be better able to expand our work with the amazing Cambridge and Boston Healthcare innovation and start-up community that will help us to co-create the solutions needed to drive real change in the healthcare industry. These collaborations will be crucial to our ability to advance our ongoing innovation in areas such as artificial intelligence, genomics, infectious disease, healthcare informatics, imaged guided therapy, robotics, natural language processing, and population health.”

“We are pleased to see Philips continue their role as a major innovator in our internationally renowned healthcare and life sciences ecosystem,” said Massachusetts Housing and Economic Development Secretary Jay Ash. “Massachusetts is home to world-class academic institutions, hospitals, R&D facilities and an incredibly talented workforce, an ideal location for Philips’ North American headquarters.”

About Somerville

Somerville's commitment to inclusion and innovation nurtures a thriving ecosystem of greentech startups, high tech companies, makers, and artists. Somerville is proud of its talented workforce, livable neighborhoods, and collaborative relationships with industry and educational partners on the forefront of technology.

About Cambridge

With over 110,000 people located within a 6.4 square mile area, Cambridge is a unique community with a strong mix of cultural, demographic and social diversity, intellectual vitality and technological innovation. Located across the Charles River from Boston, Cambridge is home to world-renowned educational institutions, Harvard University and Massachusetts Institute of Technology (MIT), as well as to more than 400 life sciences companies. Cambridge has developed into an international community, with 27% of residents being foreign born, representing over 70 countries and speaking more than 40 different languages.

About Cambridge Crossing

A 4.5 million-square-foot development within the 45-acre North Point site where Cambridge, Somerville, and Boston converge, Cambridge Crossing will be developed by the San Francisco-based company DivcoWest. Cambridge Crossing will include 2.1 million square feet of tech and office space in five buildings and over 2,000 housing units. www.cambridgecrossing.com

About DivcoWest

DivcoWest and its predecessor, Divco West Properties, were founded by Stuart Shiff in 1993. DivcoWest is an experienced, vertically-integrated operator, owner and asset manager. DivcoWest has approximately 110 employees across corporate offices in San Francisco, Los Angeles, and Boston. Since its inception, DivcoWest and its predecessor have acquired more than 110 investments - in excess of 425 buildings or 40.2 million square feet of commercial space - primarily throughout the United States, including over 5 million square feet in Cambridge and Boston. DivcoWest’s real estate portfolio includes existing and development properties consisting of office, R&D, lab, industrial, retail and multifamily. www.divcowest.com

About Philips

Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips' health technology portfolio generated 2016 sales of EUR 17.4 billion and employs approximately 73,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.